The new teaching were something like 50 ways to swindle a homeowner out of their equity; search there garbage to find bank statements indicating how desperate they are; trash talk the property telling them no one except you would buy it and low ball them; have an associate or 2 go by, look at the house, and point out structural deficiencies (just make them up even if they don’t exist).  

Agree with most here...the longer it takes to explain a situation or a deal, the less likely I am to want to do it.

Please consider this if you move forward.Additionally, you need to have a broker on payroll in illinois and three separate bank accounts with the security deposit trust account located in illinois.

Will the banks allow me to use the money to build a new home?

You may also be able to start sending letters to duplex owners explaining who you are and that you want to own and live in a duplex, etc.  

Our bank will let us use equity that exceeds 25% across multiple properties that are either owned free and clear or where they hold the first so long as the deal still cash flows with however much cash is brought to the table.

There are several myths that we have to debunk before someone truly believes they can do it.You need millions of dollars to do a dealThat it’s too complicated to figure outThat permitting takes yearsIn those communities developments cost way less (think a couple hundred thousand along with a loan from a regional bank), permitting is not difficult (much less red tape), and the towns are small enough that both the city staff and the local architects and engineers and contractors all work with you to help you navigate the process since you’re all invested in making your community better.Note: The big boys can play in the primary & secondary markets.

Wrapping 3 properties into one blanket loan shouldn't be a problem, save these are sitting on any sizeable acreage.You might get lucky and find a unicorn local bank or credit union that would consider that kind of leverage, but I would say overall, those terms are very unrealistic.Cheers!

The main issue I have is contemplating the baloon payment at the end of the 2nd year and refinancing the remainder with a bank...how can I compute that into calculating the IRR?

The problem is, and here's where I really screwed up, is that now I'm told by lenders that because we have a commercial tenant banks won't refinance the property.